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Nissan Q2 Earnings Hurt by Inspection Debacle

Earnings hit by rising sales expenses in the U.S.

by on Nov.08, 2017

Nissan CEO HIroto Saikawa outlines the company's quarterly results in Japan today.

Nissan Motor Co. reported a 21.6% drop in operating profit for the second quarter. The $1.1 billion, or 128.5 billion yen, was the company’s smallest quarterly profit since 2014.

The Japanese automaker suffered in the quarter just ended from rising expenses and costs from improper final inspection procedures on products at its six plants in Japan. The failure to follow procedures forced the company to shut down the plants for several weeks to review the issue.

Financial News!

The company admitted that uncertified technicians performed final checks for vehicles sold in Japan. The techs were used because some inspection steps had been transferred to other inspection lines, in violation of ministry rules. (more…)